Monday, February 11, 2008

Unitech Enters Into JV With Ruby Mills

Real estate companies may be having a tough time in the capital markets but that is not stopping them from building their businesses on ground. Unitech has entered into a joint venture with Ruby Mills, owned by Bharat Shah. Just behind Raj Thakeray''s Kohinoor Mills is another piece of land. Not as visible and tucked away off the main road, Ruby Mills is a five acre property in Mumbai''s Dadar which was recently valued at Rs 400 crore and it now seems to be on Unitech''s radar.

Sources said that Unitech has entered into a joint venture with Ruby Mills, owned by Bharat Shah and the deal is likely to be a profit sharing agreement with Unitech making no payment up front. It, however, will bear the costs of development.Ruby Mills'' owner Bharat Shah was unavailable for comment but sources close to the development said that the deal is close to being sealed. For Unitech, this is access to prime land and for Ruby Mills, it lends itself credibility. In the recent past, other mills in the area have also been snapped up in large deals fetching huge premiums as seen with NTC''s mill land.

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